Heinz Discloses its Supply Chain Impact on Deforestation
Trillium has been in dialogue with Heinz (NYSE: HNZ), one of the world’s largest consumer products companies, asking the company to complete a Forest Footprint Disclosure, which would describe how Heinz is assessing the company’s supply chain impact on deforestation and the company’s plans to mitigate these risks. Commodities, including palm oil, soy, beef, sugar and paper, are used in a variety of Heinz products and have been significant contributors to global deforestation.
Earlier this year, Heinz – whose brands also include Ore-Ida and T.G.I. Friday’s – committed to publish a Forest Footprint Disclosure in exchange for the withdrawal of Trillium’s shareholder proposal requesting the report. Heinz completed its first Forest Footprint Disclosure (FFD) report on October 1st; six months ahead of the negotiated April 2013 deadline.
Findings from the company’s report will be included in the 2012 Annual Review conducted by FFD, which acts as a central point of exchange for information, research and best practice case studies on deforestation issues. FFD’s annual review benchmarks data by industry sector and offers companies and investors a forum to discuss the year’s progress and hear the latest activities underway affecting deforestation.
“Heinz’s willingness to engage in constructive dialogue with Trillium and its partners, and devote resources to understanding the material risks associated with deforestation, is commendable. The company has demonstrated an understanding of the forest footprint of its palm oil purchases and is on track to reach its goal of converting to 100% certified sustainable palm oil by the end of 2013”, said Susan Baker of Trillium’s Shareholder Advocacy & Corporate Engagement team.
Trillium will monitor the company’s progress through the FFD process – which will soon become part of the widely used Carbon Disclosure Project.